The reported near-physical altercation between two senior members of Donald Trump’s economic team has raised eyebrows amid growing concerns over the stability of the U.S. economy. Treasury Secretary Scott Bessent allegedly threatened to punch Bill Pulte, head of the Federal Housing Finance Agency, during a private gathering at a prominent MAGA-aligned club, according to two sources familiar with the incident. While the White House declined to comment, and neither party has publicly confirmed the confrontation, the episode underscores mounting tensions within Trump’s inner circle at a time of economic fragility.
The friction reportedly stemmed from Bessent’s belief that Pulte had spoken negatively about him to the president. This perceived disloyalty triggered a heated exchange, with Bessent reportedly suggesting they “take the matter outside.” Such behavior, while perhaps fitting within the combative culture of Trump’s political orbit, raises serious questions about the cohesion of his economic leadership.
The incident, first reported by Politico, offers a glimpse into the increasingly volatile dynamics of Trump’s second-term administration. Unlike his first term, which featured more overt internal resistance from so-called ‘adults in the room,’ this iteration appears defined by fierce loyalty and personal rivalries. The absence of moderating voices may amplify the risks of policy instability, particularly in economic governance.
What makes this episode particularly concerning is the singular emphasis on personal allegiance to Trump over institutional integrity. In this environment, officials’ effectiveness hinges less on policy expertise and more on maintaining the president’s favor. Should Bessent perceive his standing as weakening, financial markets could react swiftly, given his role in managing economic sentiment and tempering Trump’s more radical impulses.
This loyalty-driven culture also fosters self-censorship. Advisers are incentivized to echo the president’s views rather than challenge them, even when those views contradict economic consensus. For instance, Bessent recently dismissed the widely accepted understanding that tariffs function as a tax on consumers—a stance at odds with mainstream economics and analyses from institutions like Goldman Sachs. His refusal to acknowledge this reflects the political cost of dissent within the administration.
Meanwhile, economic indicators are deteriorating. Last month’s jobs report revealed only 22,000 new positions, a sharp slowdown that signals the impact of Trump’s aggressive tariff policies. These measures have disrupted supply chains, driven up consumer prices, and weakened hiring, particularly in the consumer goods sector. Vulnerable demographics, including Black Americans and young workers, are seeing worsening employment trends.
Despite the data, top officials continue to downplay concerns. Bessent described August’s employment figures as unusually ‘noisy,’ while National Economic Council Director Kevin Hassett cited ‘dissonance’ in the numbers. Commerce Secretary Howard Lutnick predicted a dramatic turnaround within a year. Such optimism lacks grounding in current trends and may reflect political messaging over economic reality.
Public sentiment reflects this disconnect. A CBS News poll found only 36% of Americans believe the economy is in good shape, while 64% report rising prices and 56% think economic conditions are worsening. Trump’s approval ratings on inflation and trade have dipped, eroding support among independents and moderates who backed him in 2024.
Cardiff Garcia of the Economic Innovation Group noted that workers remain focused on the cost of essentials—housing, food, and basic services—rather than tariffs, which rank last among their policy priorities. The administration’s focus on nationalist economic measures appears increasingly out of step with public concern.
With the economy showing signs of strain and top officials nearly coming to blows, confidence in leadership is fraying. The combination of erratic policy, internal conflict, and dismissal of economic data paints a troubling picture—one that global markets cannot afford to ignore.
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Why a near-fistfight at a MAGA nightspot spells danger for the global economy
It gives new meaning to the term economic meltdown. n nReports that fists almost flew between two members of President Donald Trump’s crack finance team are hardly reassuring with the economy perched on the precipice of a jobs slump and a possible deeper slowdown. n nBut the story that Treasury Secretary Scott Bessent threatened to punch Federal Housing Finance Agency chief Bill Pulte in the face at an exclusive MAGA club last week is a sensational morsel of Beltway gossip. n nThe spur for the near-fisticuffs was Bessent’s belief that Pulte had bad-mouthed him to the big boss, two sources familiar with the evening told CNN. The White House declined to comment. CNN has reached out to the offices of the alleged potential pugilists. n nBessent’s combativeness — he allegedly told Pulte he wanted to “take the matter outside” — might draw quips about the first Treasury Secretary Alexander Hamilton and the most notorious duel in American history. n nBut it offers two worrying insights into tensions inside Trump’s brain trust at a pivotal moment. n nFirst, the supposed showdown, first reported by Politico, lifts the lid on Trump’s nest-of-vipers political operation. Trump’s second administration has lagged the vicious infighting of his first, since he’s jettisoned anyone who saw themselves as an “adult in the room.” But the Bessent-Pulte bureaucratic cage match shows that Trump’s eight cacophonous months back in power are taking a toll. n nThe true currency of Trump world n nMost presidents would recoil in horror at reports of senior aides on the verge of a brawl. Former President Barack Obama used to talk of his Lincoln-style team of rivals. But it’s hard to imagine his cerebral Treasury Secretary Timothy Geithner throwing down the gauntlet to a Cabinet colleague during the Great Recession in 2009. n nTrump, being Trump, might welcome the friction, seeing in it a chance to play his warring lieutenants against one another to his advantage. n nBut there’s a graver reason why a cocktail hour brouhaha in Georgetown will send alarm bells around the world. n nThe alleged shouting match reveals there’s only one currency in MAGA world: uber loyalty to Trump. Bessent was apparently furious because he thought his colleague had been talking about him with Trump behind his back. The Treasury secretary has emerged as an impressive inside player in the bruising Washington game and knows that his capacity to do his job — calming the markets, shaping the president’s wildest instincts and stabilizing the global economy — requires Trump’s absolute confidence. Once Trump turns against someone, it’s a tough road back. If Bessent starts to sense he’s on the outs, investors might panic. n nIt’s obvious that the first duty of Trump’s officials is to cater to his self-image of greatness rather than to the public. Hence the fawning North Korea-style genuflections that Trump requires in Cabinet meetings. n nBut flattery exacts a price. Trump’s team must tell him what he wants to hear — not what he should hear. Such self-censoring is always dangerous for presidents, who live inside bubbles of deference even in normal times. n nIt’s even more hazardous under Trump, since the president is embarked on the riskiest, most unorthodox economic experiment in generations. His tariff wars have ripped up a global trading system that made the US the world’s mightiest economic power. Now, Trump wants to crush another cornerstone of US financial superiority: the independence of the Federal Reserve. n nHe’s not just pursuing another long-term obsession — scything interest rates. He could also get his hands on the Fed’s other levers, like regulating banks and bailouts, in a way that could profit him and his rich friends in the event of a major financial shock. n nPulte’s clash with Bessent, meanwhile, will only thicken intrigue about his growing behind-the-scenes role. He’s recently emerged as a key player since his agency has been unearthing alleged irregularities on mortgage forms filed by some of the president’s top targets, including Lisa Cook, whom Trump is trying to fire as a Fed governor. n nAs Trump’s team spars, Americans are getting really worried about the economy n nInternecine feuding may be another distraction from what Americans care about most. n nNews of tensions inside Trump’s top team emerged days after a grim jobs report suggested that Trump’s outlandish economic approach is beginning to cause damage. The report, released on Friday, showed the economy added only 22,000 positions last month. The data showed the consumer goods sector is now suffering from rising prices brought on by tariffs, the volatile way they are being imposed and the resulting slowdown in hiring. The employment rates among Black Americans and young people, often harbingers, are worsening fast. n nBut Trump’s officials cannot break any of this down in public to avoid angering the president. A month after their boss fired the head of the Bureau of Labor Statistics, his top aides are still claiming that the numbers are off. n nOn recent TV talk shows, Bessent warned that August was the “noisy” month for employment numbers. National Economic Council Director Kevin Hassett warned of “dissonance” in the data. Commerce Secretary Howard Lutnick, chief cheerleader for Trump’s elusive golden age, said on CNBC: “Wait until a year from today. Wow, it will be amazing numbers.” n nHere’s hoping they are right. Maybe Trump’s irregular approach will reap dividends with jobs returning home and a manufacturing boom. Perhaps lower interest rates will boost growth. And the US economy has previously made fools of those who’ve bet against its resilience. n nBut that would require almost everything most people know about the economy to be wrong. n nThere was a worrying moment on NBC’s “Meet The Press” on Sunday. Bessent made a claim that was hard to take at face value from such a serious figure. He refused to agree with what almost every credible economist believes — that tariffs are an effective tax on consumers. “No, I don’t,” Bessent said. He also claimed that investment banking behemoth Goldman Sachs, which calculated that most tariffs were being paid by the US consumer, was not a credible source. (Bessent has previously argued the idea of tariff-based inflation is “the dog that didn’t bark.”) n nAny other answer would have busted his relationship with Trump and offered new ammunition to alleged adversaries inside the administration like Pulte. n nBut voters, a plurality of whom turned to Trump in the 2024 election in the hope that he’d alleviate the high anxiety of punishing prices for groceries and housing, are watching. n nWhile Trump is bolstering his appeal to his base by threatening to send troops into Chicago and cranking up the pace of his mass deportation drive, most Americans want him to do something else — fix the economy. A CBS News poll published last week showed that just 36% of voters think the economy is good. Some 64% think prices have been going up in recent weeks and 56% think the economy is getting worse. In a new NBC News survey, Trump’s approval is weakening on vital economic issues. Only 39% approve of his handling of inflation and 41% back his handling of trade and tariffs. He’s down to his most loyal base on the economy and has pushed away independents and more moderate crossover voters who helped send him back to the White House. n nCardiff Garcia, the editorial director of the Economic Innovation Group, a bipartisan public policy organization, told CNN’s Audie Cornish on Monday that workers were becoming more pessimistic about the economy and Trump’s tariff strategy. n n“They’re most worried about the same things that they actually were worried about during the Biden administration, which is the cost of basic goods and services and the cost of housing. They really wish that the administration and the Congress would focus on that instead,” he said. “Tariffs actually ranked dead last as what workers think that the president should be prioritizing right now.” n nThe economy is on a knife’s edge. The data is turning bad. And two top members of the president’s team almost came to blows. n nNo wonder the country is worried.